Gas prices could drop below $3 by Christmas

The average U.S. gas price could drop below $3 per gallon by Christmas, according to price tracker GasBuddy, dipping to the lowest levels since February despite worries about inflation and a possible recession.

GasBuddy reported a decline of 22.7 cents per gallon in the last month and said the dip could continue through December, pushing the price per gallon down to a possible $2.99 by the Christmas holiday.

The national average figure is currently hovering around $3.50 this week.

“All the metrics look very positive for motorists as this week is likely to continue seeing falling gasoline prices, with many areas falling to the lowest level since Russia’s invasion of Ukraine in February,” said GasBuddy’s head of petroleum analysis Patrick De Haan.

“It’s entirely possible the national average price of gasoline could fall under $3 per gallon by Christmas, which would be a huge gift to unwrap for motorists after a dizzying year at the pump,” he added.

AAA puts Wednesday’s national average at $3.49, down from $3.52 on Tuesday, $3.61 last week and $3.76 last month.

The figure is still 10 cents above the national average logged this time last year, but is far below the record average of $5.02 recorded in June.

High prices at the pump appeared to be a big factor for voters heading into November’s elections amid broader concerns about inflation, though a fall decline from the summer’s record prices gave Democrats some optimism about their midterm prospects. 

Inflation has been tied to pandemic-related supply chain issues and labor shortages, among other factors, while gas has been a key driver of rising prices this year.